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Screening for dividend growth names

  • Dividend payers may be a good place to hide out from rising interest rates, but those stocks sporting the highest yields - telecoms and utilities - tend to have slow payment growth, making them less-attractive as rates rise. Checking back to the 1994 bond bear market, telecoms and utilities were among the market's worst performers.
  • Better to shop for modest payers, but above-average payment growth. Barron's screens for those characteristics combined with reasonable overall valuation and turns up three names: Boeing (BA), CVS Caremark (CVS), and GE.
  • Certain dividend ETFs employ this strategy as well, with Vanguard's Dividend Appreciation (VIG) - almost zero exposure to telecoms and utilities  - and WisdomTree's U.S. Dividend Growth ETF (DGRW) coming to mind. Others include DGRS, DNL, EMDG, DGRE.
  • Other dividend ETFs: FDL, FVD, MDIV, QDF, QDYN, QDEF, DIV, CVY, DVY, HDV, IYLD, PEY, PFM, SCHD, SDY, SDYL, DVYL, VYM, DHS, DTD, SYLD, KBWD, SPHD, DLN, DON, HILO.
  • Telecom and utility ETFs: IYZ, XTL, VOX, LTL, TLLIDU, PUI, XLU, VPU, RYU, FXU, PSCU, UPW, SDP, UTLT.
Comments (4)
  • mandolin
    , contributor
    Comments (98) | Send Message
     
    Dividend Growth vs. Steady Growth. I've owned steady EDDY (ED) since 1967 back when I worked for this company (5 years) and while I've never sold a share I increased my share holding by 260 in 1995
    Since 1995 I'm up 370%, plus drip shares, since then I've taken advantage of the DRIP plan offered by the Co. These shares are paper held so selling takes more than a click of a button and adds meaning to the hold for the long haul. I've never fretted the fluctuation as the dividend while not guaranteed is most reliable, It's gone up 25% since 94 I now have over 435 shares. Drip, Drip, Drip,
    The only other stock I hold along these lines is T which is up 300% for the same time period with a div. increase of 77% . So IMHO there is much to be said for keeping a few of these slow steady growth holdings in your portfolio.
    12 Sep 2013, 02:29 PM Reply Like
  • BlueOkie
    , contributor
    Comments (4754) | Send Message
     
    What about Dividend Aristocrats or Champions as a starting point. I wouldn't touch BAC - they are in troublt.
    12 Sep 2013, 02:30 PM Reply Like
  • Skezix
    , contributor
    Comments (34) | Send Message
     
    Utility companies are turning into growth companies, because of mandated alternate energy regulations; some of them may not act like or follow bonds as in previous bond bear markets.
    12 Sep 2013, 03:44 PM Reply Like
  • thomas85225
    , contributor
    Comments (563) | Send Message
     
    By Jim Puzzanghera
    August 26, 2013, 6:40 a.m.

     

    WASHINGTON -- Orders for airplanes, computers and other durable goods, a key indicator of future economic growth, dropped more than expected last month in a bad sign for the strength of the vital manufacturing sector.

     

    The Commerce Department said Monday that orders were down 7.3% in July from the previous month, the first drop since March and the biggest falloff since August 2012.

     

    Orders had been up a revised 3.9% in June. Analysts had projected a 4% drop for last month.
    http://lat.ms/1e7hvqS

     

    Ford stock is down to 17.00 dollars a share
    and Ford is closing its factories UK and in Australia

     

    Air India and Jet air has decided to sell five out of its eight Boeing 777-200LR aircraft owing to changes in market dynamics due to the Global recession, steep increase in fuel prices and poor yields on non-stop routes,
    http://bit.ly/19EVN8z
    12 Sep 2013, 04:38 PM Reply Like
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